Law No. 165 Of 3 August 1998

Original Language Title:  LEGE nr. 165 din 3 august 1998

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Law No. 165 of 3 august 1998 establishing the disposal of the Ministry of agriculture and food of the Fund for the financing of the expenditure relating to agricultural works in the plant Kingdom and the animal husbandry in the period 1998-2000 PARLIAMENT ISSUING published in MONITORUL OFICIAL nr. 289 of 6 august 1998, the Romanian Parliament adopts this law.


Article 1 (1) of the appropriations provided for in the State budget for 1998 is constituted at the disposal of the Ministry of agriculture and food and is managed by it, by commercial banks, the Fund for the financing of expenditure relating to agricultural works in the plant Kingdom and the animal husbandry, hereinafter referred to as the Fund, amounting to 940 billion lei.
  

(2) the Fund shall be supplied with the appropriations approved by the State budget with this destination for the Ministry of agriculture and food and reconstructing of the amounts repaid and the interest paid by the commercial banks, according to the present law.
  


Article 2 (1) the Fund is intended for the crediting of agricultural producers, in order to finance expenditure relating to agricultural works in the vegetable and animal husbandry in accordance with specific technologies.
  

(2) annually, the Government, upon the proposal of the Ministry of agriculture and food, will approve the decision on crops and animal species which will be funded with priority under the law.
  

(3) for the purposes of this Act, agricultural producers are: agricultural producers, agricultural associations, agricultural associations without legal personality, established by law No. 36/1991 on agricultural companies and other forms of Association in agriculture, agricultural societies with leaseholders, legal personality, agricultural companies, private agricultural companies with majority equity or full State.
  


Article 3 (1) of the Ministry of agriculture and food fund will provide commercial banks with the necessary amounts of crediting agricultural producers to finance the expenditure relating to agricultural works in the vegetable and animal husbandry.
  

(2) the amounts from the Fund will be made available to the commercial banks on the basis of the Convention, which prescribes the amounts, terms and conditions for repayment of loans.
  


Article 4 (1) The amounts drawn from commercial banks Fund will pay an interest rate equal to the discount rate, charged by National Bank of Romania.
  

(2) commercial banks will grant loans to farmers from the Fund, which will receive more than 6 percentage points discount rate.
  


Article 5 (1) credits will be granted to agricultural producers by commercial banks, according to art. 2-4 and depending on the fulfilment of the criteria laid down in the rules of the lending bank.
  

(2) loans on the basis of this law do not benefit from Government guarantees.
  


Article 6 Beneficiaries shall repay loans loans within 360 days after the grant rates due to be agreed depending on specific technologies, in line with the terms of use of the products.


Article 7 (1) interest shall be calculated from the balance of the loan and is payable to the commercial banks according to the terms agreed in the loan contracts.
  

(2) interest on the sums drawn for commercial banks from the background is highlighted by them in a separate account.
  


Article 8 (1) within the term of loan repayment; 6, commercial banks will repay the Fund the amounts received and interest, within 10 working days from the date of receipt thereof from the borrowers.
  

(2) those loans, repaying the loans and interest on the due dates laid down in the loan contracts, receive a bonus calculated on the volume of interest that shall be deducted from the proceeds of commercial banks owed the Fund.
  

(3) the amount referred to in paragraph bonificatiei. (2) is 70% of the interest owed by the borrower.
  

(4) the Bonificatia shall be paid to beneficiaries in situation and credit if credit rates at intermediate deadlines, under full refund loans and interest to the deadlines laid down in the credit agreements.
  

(5) the amounts outstanding for the beneficiaries of credits stipulated at art. 6 will be returned to the Fund by commercial banks, together with the interest rate discount, determined by the National Bank of Romania, within 10 working days from the date the due deadlines.
  

(6) The payment from appropriations approved under the terms of art. 2-4 commercial banks will verify the destination of appropriations on the basis of documents relied on. Where are found to pay loans without due regard for the destination set, commercial banks will repay the Fund, from its own sources, the amount of credit used wrongful and discount rate.
  


Article 9 (1) agricultural producers benefiting from loans from the Fund, under the present law, are obliged to observe the intended use for which they were granted.
  

(2) change the credit beneficiary shall entail the cessation of crediting the refund loan and interest relating thereto, appropriate to the volume of loans whose destination was changed, as well as penalties to the State budget, calculated at the level of the interest rate which has been awarded the tender for the purchase of government bonds from the date of the finding of a change of destination.
  


Article 10 unused Amounts from the Fund, as well as those arising from repayment of loans and interest, the Ministry of agriculture and food at December 31, 1998 and December 31, 1999, shall be carried over to the next year and the next, under the present law.


Article 11 commercial banks which will grant credits the Fund may take, under this law, and loans with the same destination from its own sources for the campaign in the fall of 1997 and in the first half of 1998, with effect from the date of entry into force of this law.


Article 12 within 15 days from the date of entry into force of this law, the Ministry of agriculture and food, the Ministry of finance, will submit to the Government for approval of methodological norms relating to the conduct, the use and disbursement of the Fund by commercial banks to finance the expenditure relating to agricultural works in the plant and animal husbandry.
This law was adopted by the Chamber of deputies at its meeting on 2 June 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT PAULA IVANESCU this law was adopted by the Senate at its meeting on 6 July 1998, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
SENATE PRESIDENT PETRE ROMAN — — — — — — — — — — — — — — — — —